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HMRC internal manual

VAT Margin Schemes

HM Revenue & Customs
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Global accounting: Collections


Under global accounting, traders may split collections of items and sell each item separately, or form other collections for sale under the scheme. They may also combine two or more items to produce only one item for resale, for example by using one item as a spare part for another.

If a trader purchases an eligible item for £500 or more, and the item is made up of several components valued at less than £500 each, he cannot use global accounting if he sells the item in the same state as when it was purchased. For example, if the trader purchases a tea set for more than £500 which includes many pieces, each valued at less than £500, and sells it as a tea set, he is selling one item. He cannot use global accounting for the sale.

If the result of combining two or more eligible items is an item of a different nature, the new item will not be eligible for the scheme.